Morning News Call - India, September 24

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FACTORS TO WATCH
No major events scheduled for the day.
LIVECHAT - SUSTAINABLE INVESTING
September marks the adoption of sustainable development goals (SDGs) by the
UN General Assembly. UBS Wealth Management's Chief Investment Officer focuses
its latest sustainable investing report on investment ideas well suited to
pursuing the SDGs. It also lays out the types of instruments, within both liquid
and private markets, that can be invested in to further the process. We will
speak to Global CIO Mark Haefele about this as well as his views on the global
trade war and U.S.markets. To join the conversation at 02:00 pm IST, click here
here
INDIA TOP NEWS
• RBI and SEBI ready to act to calm markets: statement
The Reserve Bank of India (RBI) and the market regulator Securities and
Exchange Board of India (SEBI) are closely monitoring developments in financial
markets and are ready to take appropriate steps if needed, a central bank
statement said on Sunday.
• IL&FS unit chief resigns amid default crisis at group
IL&FS Investment Managers, a unit of India's Infrastructure Leasing &
Financial Services (IL&FS) which announced debt defaults this week, said on
Saturday its Managing Director Ramesh Bawa had resigned.
• Yes Bank loses $3.1 billion in market value after RBI curtails CEO's term
Private sector lender Yes Bank Ltd's shares tumbled nearly a third on
Friday, wiping as much as $3.1 billion off its market value, after the central
bank reduced charismatic CEO Rana Kapoor's term, creating uncertainty about its
outlook.
• Modi launches health insurance for 100 mln families ahead of elections
Prime Minister Narendra Modi launched the world's biggest healthcare
programme on Sunday, aiming to provide free health services to half a billion
poor people, which could boost his chances in national elections early next
year.
• Flipkart may appoint new group CEO in place of Binny Bansal - Mint
Walmart Inc's Flipkart unit is considering naming a new chief executive
officer at the group level in place of Binny Bansal, the Mint daily reported,
citing two people familiar with the matter.
• Modi faces calls for resignation over Rafale jet deal
Prime Minister Narendra Modi faced calls for his resignation over
allegations of corruption in a military jet deal with France after former French
president Francois Hollande was quoted as saying New Delhi had influenced the
choice of a local partner.
• INSIGHT-Where are the "good days"? Challenges mount for India's Modi
Narendra Modi swept India's 2014 general election with the slogan "Achhe din
(good days) are coming". Four years later, as Prime Minister Modi mobilises to
win re-election in May, he and his Bharatiya Janata Party are being buffeted for
a lack of jobs, falling farm prices and rural wages, a tax reform that led to
unemployment and a demonetisation exercise that sapped liquidity.
• Google tweaks privacy policy for Indian payment app after rival complaint
Google has tweaked the privacy policy of its Indian digital payments mobile
application, days after local rival Paytm complained that the U.S. tech giant's
platform allowed disclosure of customer data for advertising and other purposes.
GLOBAL TOP NEWS
• New US, China tariffs set to take effect, no compromise in sight
The United States and China are set to impose new tit-for-tat tariffs
against each other's goods on Monday, the latest escalation in a heated trade
war between the world's two largest economies.
• OPEC, Russia rebuff Trump's call for immediate boost to oil output
OPEC's leader Saudi Arabia and its biggest oil-producer ally outside the
group, Russia, ruled out on Sunday any immediate, additional increase in crude
output, effectively rebuffing U.S. President Donald Trump's calls for action to
cool the market.
• Britain's Labour to vote on keeping second Brexit referendum on table
Britain’s opposition Labour Party will vote this week to keep a second
Brexit referendum on the table if Prime Minister Theresa May fails to pass her
plan to leave the European Union through parliament, media reported.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
• SGX Nifty nearest-month futures were trading down 0.2 percent at
11,146.50, from its previous close.
• The Indian rupee is expected to open lower against the dollar amid a
decline in regional currencies after China reportedly cancelled trade talks with
the U.S. scheduled for this week.
• Indian government bonds are expected to edge lower in early trade tracking
a surge in crude oil prices and amid an expected fall in the local currency. The
yield on the benchmark 7.17 percent bond maturing in 2028 may trade in a 8.06
percent-8.12 percent band today, a dealer with a state-run bank said.
GLOBAL MARKETS
• Industrials led the Dow to a new closing high on Friday ahead of Monday's
major sector reshuffle, capping a week that largely shrugged off trade
worries.
• Asia shares eased in holiday-thinned trading and the safe haven yen gained
as China cancelled upcoming tariff talks with the United States, while oil
prices jumped after top producers including Russia ruled out boosting crude
output.
• The safe-haven Japanese yen briefly blipped higher as investors reacted to
news China had cancelled trade talks with the United States just as the latest
round of tariffs are set to take effect.
• U.S. long-dated Treasury yields slipped on Friday, in tandem with those in
Europe, as negotiations over Britain's exit from the European Union appeared to
stall.
• Oil prices rose as U.S. markets tightened just weeks ahead of Washington's
plan to impose new sanctions against Iran, with U.S. bank J.P. Morgan warning of
price spikes abvoe $90 per barrel in coming months.
• Gold edged lower as the dollar held firm on news that China has cancelled
trade talks with the United States, with the market also eyeing this week's U.S.
Federal Reserve meeting for guidance on future rate hikes.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 72.47/72.50 September 21 $105.36 mln $108.69 mln
10-yr bond yield 8.10 pct Month-to-date -$533.02 mln -$1.03 bln
Year-to-date -$1.39 bln -$6.18 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 72.2300 Indian rupees)
(Compiled by Siddharth Athreya V in Bengaluru)